Average Rate of Return Method, Net Present Value Method, and Analysis for a service company The capital investment committce of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Each project requier an imvestment of 5560,000 . Straioht-Ene deprecration wil be used, and no residual value is expected, The committee has 5elected o rate of 129 h for purposes of the net present value andysis. Each project requires an investment of $560,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Present Value of $1 at Combound Interest Required: 1a. Compute the average rate of return for each investment, If required, round vour auswer to one decimal place. Average Rate of Return Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 16. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. 2. Prepare a brief report for the capital investment committee, adwising it on the relative merits of the two investments. The frorit-end loader has a net present value because cash Hows occur In time compared to the greenihouse, Thus, if only one of the two projects can be accepted, the Would be the more attractive. 1a more Chect Ko Wark uses temaining